Measuring macroeconomic exposure: The case of Volvo Cars
Författare
Summary, in English
Volvo Cars' economic exposure to exchange rates and other macroeconomic variables is estimated using quarterly cash flows as the firm's target variable. We discuss first several issues relating to management's view of the macroeconomic environment, as well as the firm's objective and structure. These issues must be addressed before multiple regression analysis can be implemented with the purpose of estimating exposures. the use of cash flow exposure coefficients for evaluating exposure and choosing currency denomination of liabilities is illustrated, and an out-of-sample analysis of the estimated exposure coefficients is carried out.
Publiceringsår
1995
Språk
Engelska
Sidor
241-263
Publikation/Tidskrift/Serie
European Financial Management
Volym
1
Issue
3
Länkar
Dokumenttyp
Artikel i tidskrift
Förlag
Wiley-Blackwell
Ämne
- Economics and Business
- Business Administration
Nyckelord
- economic and cash flow corporate exposure
- exchange rate risk
- macroeconomic exposure management
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 1354-7798